On August 8, 2018, our wholly-owned
subsidiary PEN Brands LLC entered into the fifth amendment to its Loan and Security Agreement with MBank. The amendment
renews the agreement through July 3, 2018 and provides for an automatic one-year renewal at that time unless either party
elects not to renew. The fifth amendment also limits the amounts that PEN Brands LLC can advance to its parent, and
provides that advances based on eligible inventory will reduce monthly by $7,500 per month starting November 1, 2018. Other
terms are substantially the same.

SIGNATURES

Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.